Commodity markets regulator Forward Markets Commission (FMC) on Wednesday directed National Spot Exchange Ltd (NSEL) to declare members, who have failed in making payments, as defaulters and liquidate all their realisable assets.

FMC's direction comes a day after NSEL defaulted in the first tranche of payments to investors. NSEL was able to pay only Rs 92 crore out of the scheduled Rs 174.72 crore. The exchange had informed that nine members (buyers) did not pay their dues.

"As such the exchange should have processed to declare the members who have failed to meet their pay-in obligation, as 'defaulters'...and should have closed out their outstanding position," FMC said.

The regulator also ordered NSEL to ask defaulters to hand over books, documents, papers, assets, cheque books and other documents, and the same should vest with the exchange for the benefit of creditors.

"The Exchange, therefore should proceed to liquidate all realizable assets of the defaulter member/s to meet his/their pay-in obligations," FMC said in a letter to the NSEL board, which includes exchange's Vice Chairman Jignesh Shah.

The proceeds of commodities auctioned and realisation of assets of defaulter should be deposited in escrow account and should be paid to selling members with the approval of the Commission, FMC directed.

The regulator also asked NSEL to bring it to the notice any deficiency being found by the Collateral Management Agency appointed by the exchange with regard to quality and quantity and value of the stock lying in the accredited warehouses.

"Based on the findings of the Collateral Management Agency take suitable punitive action as per the Law of the Land under intimation to the Commission," the letter said.